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PATHWAYSto the C-Suite

1 0 D E C E M B E R 2 0 1 7 u I R U P D A T E

IRO SKILLS

I R U P D A T E u D E C E M B E R 2 0 1 7 1 1n ir i .org/ irupdate

If your career goal is to attain the title of

CFO – or even CEO – your pathway may

be a straight line, but often it depends

on gaining diverse experience across

your company. That can lead to many

zigs and zags.

Howard J. Thill, executive vice president and

CFO of Sanchez Energy Corporation, admits he

took a convoluted path to the C-suite, starting

out in operations, moving to tax, then master-

ing internal finance and business development,

before spending 17 years in an investor relations

slot with responsibility for public relations and

government relations.

Mastering these positions helped him build

credibility in the company and expanded his

resume. “I knew the financial and the operation

sides because I kept looking for opportunities

to learn,” he says.

Thill points out that he has known profession-

als who made have made lateral moves – or even

have taken a step backward – in order to broaden

their skill sets in preparation for their eventual post

in the C-suite. “It’s a mistake to think every move

must be a promotion,” he insists. “Sometimes

you need to make a lateral move just to develop

a better-rounded knowledge of the company.”

Ismail “Izzy” Dawood, CFO of Santander

Consumer and Chrysler Capital, agrees with that

advice. “Learn other skill sets, and get out of your

comfort zone,” he recommends. “Many of the

IROs I know have been in their function for a long

time. It’s a great role because you have exposure

to the CEO, senior leaders, smart investors, and

other folks, but to be a successful CFO, you have

to learn other parts of the business, whether it be

traditional management accounting, corporate

development, operations, or marketing. For the

next step, you need other arrows in your quiver.”

Drawing on his own experience, Dawood ex-

plains he has worked for three companies. Starting

out as an analyst with the first company, he rose

in 14 years to the senior vice president level “by

raising my hand and gaining the confidence of

my peers as well as my managers.”

At the second company, he worked for the CFO

Learning multiple parts of your business and volunteering for new and different assignments can position you for a promotion to the C-Suite.BY MARGO VANOVER PORTERPATHWAYS

to the C-Suite

IRO SKILLS

nir i .org/ irupdate1 2 D E C E M B E R 2 0 1 7 u I R U P D A T E

corporate ladder. “You need to be able and willing

to roll up your sleeves and jump in and help where

needed,” Thill says. “You need to let people know you

are willing to take on additional responsibilities.”

However, be careful how you communicate

your lofty goals and ambitions. For example,

rather than saying, “I want a promotion,” even if

that is your ultimate goal, Thill urges you to ask,

“How can I contribute more to the company?” or

“What more can I do to demonstrate my value?”

Dawood took a similar approach in his upward

career climb. “Until the last year before I left, I re-

ally never told my boss I wanted to be a CFO,” he

explains. “What I always said is, “I need to learn

about what you do and what the company does.

If opportunities come up to add hard or soft skills,

I want to raise my hand.”

The approach matters, he says. “In my opinion,

your ambition should never be, “This is the job

I want.” Your ambition should be “Here’s what I

want to learn because these are the areas I want

to strengthen. As an IRO, you have to talk to about

half the C-suite and let them know that you’re

willing to take the step to learn and that it’s not all

about the title, or the pay, but it’s about building

your skill set. When preparation and opportunity

come together, you take the step.”

Bauer is a big believer in all company em-

ployees, not just IROs, making their ambitions

known. She encourages a CFO want-to-be to get

involved in operations where he or she will be

held accountable for a P&L.

“Typically, IROs are running an expense center

vs. a revenue-generating center,” she says. “A key area

that IROs miss out on is being able to run a complete

P&L. If you want to get to CEO, CFO, or president

of a division, you need to understand the levers to

drive top-line growth. In today’s world, growth is so

hard to come by for most companies. Being able to

drive top-line results is the differentiator.”

She also encourages IROs to jump at the chance

to lead special projects. “If you go through an ac-

quisition, raise your hand to lead the integration,”

she says. “If you’re swapping out an ERP system,

raise your hand to lead the switch. You can prove

your leadership and financial skills with special

"Typically, IROs

are running an

expense center

vs. a revenue-

generating

center. A key

area that IROs

miss out on is

being able to

run a complete

P&L. If you

want to get

to CEO, CFO,

or president

of a division,

you need to

understand

the levers that

drive top-line

growth."

- Liz Bauer, chiefcommunications and

investor relations officer, CSG Systems

International, Inc.

for nine years in four different functions while

learning – and overcoming – the roadblocks in

each area. For example, when attracting leaders

to participate on the company’s Belgium board

became a challenge, he spoke up with enthusiasm

and jumped at the chance to prove his worth. “Let

me do it,” he said. Although he received no extra

pay or no additional title, he “gained a very strong

appreciation for the regulatory environment in

Europe, which added to my skill set.”

According to Dawood, IROs who think their

next step most certainly should be CFO should

re-evaluate their game plan.

“The next step is to learn the other functions

under the CFO,” he emphasizes. “An IRO is normally

leading a group of three to six people. For a CFO,

80 percent of the time you’re managing groups

of several hundred senior executives who have a

vision and plan. You’re leading by example. You’re

putting processes and executions in place. Learn

how to lead large, cross-functional teams. You’re

managing managers, not individuals.”

He explains he used to run corporate develop-

ment team consisting of “10 to 12 Type A personali-

ties who would wake up on a Saturday morning and

come to work if I told them to. I had to learn how

to run a group of 400 people who are process- and

timeline-focused accountants. It’s a whole different

level of engagement and motivation.”

Elizabeth “Liz” Bauer, chief communications

and investor relations officer, CSG Systems In-

ternational, Inc., seconds the notion of gaining

exposure to multiple areas of your company.

“The irony is IROs want to get to the C-level posi-

tion, CEO or CFO, but there are a lot of other areas

in the company where you can be highly productive

and make a difference, such as running a division or

functional area,” she says. “Raise your hand, sign up

for a project, lead a cross-functional team, be held

accountable to KPIs like everyone else in the com-

pany, perform, and people will want you in there.”

Raise Your HandExecutives in the know agree you must speak up

and volunteer for opportunities that may be out-

side of your current job description to move up the

nir i .org/ irupdate I R U P D A T E u D E C E M B E R 2 0 1 7 1 3

projects where you can lead a cross-functional

team and are held accountable for a budget with

key metrics you have to perform against.”

Advancement AdviceBoth Thill and Dawood are adamant that before

you can be considered for an internal promotion

to a spot in the C-suite, you first must obtain and

demonstrate a comprehensive understanding of

your company, your industry, and finance.

“It’s easier if you come from a financial back-

ground and have spent time in accounting, financ-

ing, or banking, which will give you a leg up,” Thill

says. “Those are givens and true for advancement

to any position. You need to know the company,

know the industry, and drive home how you can

add value to the company. You need a breadth of

knowledge and understanding of the business to

deliver value through problem solving.”

In his opinion, you don’t have to be an attorney

or specialist to be considered for upward mobility.

“I’ve seen engineers, geologists, and accountants

become CFOs,” Thill says. “The trait they all have

in common is a financial knowledge, either from

an advanced degree or on the job.”

Other advice includes:

Polish your personality. “This is not a beauty

contest, but you have to have the personality and

self-confidence to get out in front of employees,

coworkers, investors, and bankers and project

your knowledge,” Thill says.

Earn the respect of coworkers. “You have to be

respected by your current peer group so when you

do take that seat it’s easier to succeed,” Dawood

says. “It’s more challenging when someone is put

in the seat who no one knows about or has worked

with. You have to earn the position.”

Play for the team. While you need to project

confidence in your own ability, don’t let an exag-

gerated sense of self-esteem sabotage your suc-

cess. “I would much rather have a team player

than someone who is overbearing and knows

everything,” Thill says. “You need to reflect and

share the company’s corporate values.”

Leverage your knowledge. “You have to con-

tinue to develop your skill sets, financial acumen,

banking interests, and knowledge and build a

portfolio of accomplishments, rather than being

a bag carrier for the C-suite,” Thill emphasizes.

“There are very few jobs that see such a broad

view of the company as investor relations. You

need to leverage your knowledge and make sure

you impart your knowledge to people inside the

company as well as external constituents.”

Too often, he says, IROs spend a tremendous

amount of time visiting with investors about the

company, industry, and general economic condi-

tions, but fail to let the CFO and CEO know the

extent of their knowledge base. “Complete the

circle,” he advises.

Practice collaboration. “In the C-suite, your

ability to influence and gain consensus is critical,”

Dawood says. “The more senior you move up, the

more it becomes important for you to collaborate

and reach consensus because the folks you work

with are also successful. Bringing them all together

to get to a common goal is a critical skill set. In

the C-suite, you need to know how to lead a large

group of people, keep them connected, and ensure

they are all walking down the same path.”

Develop your own vision and then work hard to achieve it. As an IRO, you are communicating

the vision of the CFO and CEO to investors and

the public. Once you move into the C-suite, you’ll

need to “communicate your own vision and what

you want done, which requires strategic thinking

and belief in yourself,” Dawood says.

“Strategic thinking is always critical,” he adds,

“but at the end of the day, I believe in the old say-

ing, ‘Success is 1 percent inspiration and 99 per-

cent perspiration.’” IR

MARGO VANOVER PORTER is a freelance writer

in Locust Grove, Virginia.